Industry Analysis & Industry Trends
Driven by government support and increasing demand from patients, the development of traditional Chinese medicine (TCM) hospitals has accelerated in recent years. In 2014, revenue for this industry is expected to increase to $36.9 billion, up 13.8% from 2013 and representing annualized growth of 16.2% from 2009.
For the Traditional Chinese Medicine Hospital industry, a growing number of patients has ensured revenue and profitability increases. Profitability is expected to rise from 0.9% in 2007 to an estimated 4.0% in 2014. The scale of traditional Chinese medicine hospitals has also been expanding. There are about 2,971 traditional Chinese medicine hospitals in China, with 208 beds each on average.... purchase to read more
Industry Report - Starting a New Business Chapter
The government has set up high entry barriers for this sector with its numerous policies, regulations and licensing processes. TCM hospitals must comply with the “Traditional Chinese Medicine Institution Setting Standard” by the State Council and with local health planning.
Wholly foreign-owned medical institutions are forbidden in China. However, start-up capital is large for the establishment of new hospitals.
Highly skilled doctors and hospital staff generally prefer working in government hospitals and so acquiring skilled staff can be difficult, another barrier to entry.
Patients often prefer hospitals with well-established reputations and experienced doctors. Compared with these well-known hospitals, new hospitals are less competitive... purchase to read more